5.2 Production methods
Production is generally divided indifferent methods that allow for an understanding of how the manufacturing process is to take shape. For example, building a large vessel such as a tanker that will ferry goods across the ocean involves a production method different from the production of cars or bread. Different production methods may also be combined in various industries; however, the primary goal in each production method is the maximization of efficiency without the sacrifice of quality.
Public Domain Picture
Remember that when we looked at Figure one on page (?), we identified that the factors of production that become the factor inputs for the production process are land labor and capital. Well, try and remember that when each production method is distinguishable from the other because of the degree by which we use any one of the factors of production. Lets take a look at the production methods individually and draw these differences out. Job/customized production
Job production entails the production of one product at a time. The example of building a large vessel such as a tanker that will ferry goods across the ocean is that on Job production. One tanker is built at a time by Kawasaki Heavy Industries, Limited who also produces the Kawasaki motorcycle! Other examples of job production in companies can be seen with aircraft manufactures such as Boeing and Airbus. Although all the above represent large machines and equipment, a wedding dress and wedding cake, and a tailored suit, are all examples of job production. Therefore, job production generally is labor intensive, with a workforce that is highly skilled and also generally with machinery that is specialized. The distinct advantages of job production are: 1) Very motivational for workers as it is not monotonous but varied and results in pride of accomplishment. 2) Requires less management coordination and control. 3) Due to the labor intensive nature of focus the quality is higher and 4) The job can be modified to meet the needs and tastes of the consumer
There are also disadvantages of Job production which are as follows:
1) The overall costs of manufacturing is highest when compared to the other production methods, this due to the highly trained labor and special equipment 2) Due to the specialized use of equipment, these may not be convertible to any other use and therefore serve a limited purpose. 3) The demand for special jobs will require longer production time and therefore delay income Can you think of other examples of job production? Does having a private tutor as opposed to sitting in the classroom with 15-20 other students seem as another suitable example?
Batch production
Remember that we said each production method is distinguishable from the other because of the degree by which we use any one of the factors of production. Batch production therefore has a different degree of usage in the factors of production when compared to job production. Instead of one item produced at a time, with batch production a greater number of products are produced. There are therefore similarities in the products being produced although the number is limited to a set amount. A good example would be the production of a particular style of car seats or baked goods. When the batches are produced, they can be tailored to meet the needs and demands of a group of consumers with similar tastes and wants. Therefore, as compared to the job production method, a larger number of the products can be manufactured at a lower cost of production. Workers are not as engaged and machines are more active. Therefore, this process is more capital intensive.
There are clear advantages in the batch production method, which are as follows:
1) Each batch can be designed to meet the consumers wishes, therefore there is some choice inherent in this production method as the alteration of machines allows for this flexibility
2) There is the likelihood that workers will work in teams and produce varied products. The costs of these employees will invariably be lower as they do not need to be highly skilled.
3) The costs associated with the machines will be lower because the produced goods will be similar and thereby standardized.
4) Batch production is more expedient than job production. In this respect twenty or thirty units can be replicated as opposed to one item at a time as we see in nob production.
The disadvantages of batch production are as follows:
1) Although there are some benefits for the workforce in batch production plants, a disadvantage is the lack of motivation in repetitive batch output. Workers will not have the satisfaction of being a part of the entire process and thereby will not feel the sense of accomplishment seen in Job production.
2) In the event the batch order request is of a low number, the related manufacturing costs of having to alter the equipment to meet the new production requests may outweigh the benefits of each batch production
3) Work-in-progress inventory will imply that the batch is still a cost of ongoing production whereby the entire process is incomplete. Therefore, batch production will mean that production costs will not be meet quickly through rapid production and sales.
4) The costs associated with adjusting and servicing the production machinery are not only time related but labor related.
Batch production lies somewhere between job production and the next production method, mass or flow production.
Mass/flow/process production
The type of production process is also distinguishable from the others because of the degree by which we witness the use of the factors of production. Mass of flow production is a continuous process that is very capital intensive and features a high volume of products emerging as a result. In this respect, large inventories of raw material are needed to continuously feed the manufacturing. There are many examples of this multiplication of human effort through the use of machines, such as the bottling industry, newspaper companies and the sweets and confectionaries industries among others.
The process is repetitive; fast paced and requires the use of computers or (CAM) Computer Aided Manufacturing.
The advantages of Mass or Flow production
1) Perhaps the biggest advantage is what we call economies of scale. Because of the high volume of units produced, the per unit cost drops dramatically.
2) On account of the highly capital intensive nature of the manufacturing, human labor cost are reduced significantly and thereby further decreases labor related costs. The labor is restricted to machine specialists and supervisors
3) Due to use of machines, flow production can continue uninterrupted at all times of the day and all dates of the year in order to meet market based demands. If the demand wanes, in turn the production can be reduced and the stockpiling of finished goods inventory reduced.
The Disadvantages of Mass or Flow production
1) If you can imagine workers in the factory doing monotonous work and being bored, well this is on the major disadvantages of Mass production. The repetitive nature of flow production will severely affect motivation and morale will suffer.
2) We said each production method is distinguishable from the other because of the degree by which we use any one of the factors of production. Because flow production requires large investments in capital, the cost of setting p and installing the machines will be very high. The return on the investment will have to be calculated for the efficiency realized, meaning human labor can be decreased in order to meet the lower cost target. This decision can have its unintended consequences.
3) Due to the mass production of units, quality control will suffer. Consider the ability of scrutinizing a unit that has been produced in job production. This is absent in mass production.
4) If the machines breakdown, the costs of repair can be very high. In addition periodic maintenance is required which also adds to the costs. However, as previously stated, the cost benefit analysis has to be carefully weighed.
5) As products are produced en-masse, they are indistinguishable from each other, therefore the standardization of the products produced is also a disadvantage as consumes will not be able to request or be provided with products that may suit their individual taste.
Cellular manufacturing
Cellular manufacturing is a product of Lean production, which we will examine shortly. The concept of cellular manufacturing lies in the layout or design of the workplace. In essence the workers and manufacturing process takes place in cells or groups. Workers multitask, utilize machines and integrate the production process in their unit with less time wasted in movement of labor and material. The advantages of Cellular production 1) The manufacturing process is more team oriented and balanced thereby increasing productivity. 2) The motivation level is workers is higher as the team based approach is more suited to group interaction 3) The movement of material and labor is reduced significantly adding to productive time.
Production is generally divided indifferent methods that allow for an understanding of how the manufacturing process is to take shape. For example, building a large vessel such as a tanker that will ferry goods across the ocean involves a production method different from the production of cars or bread. Different production methods may also be combined in various industries; however, the primary goal in each production method is the maximization of efficiency without the sacrifice of quality.
Remember that when we looked at Figure one on page (?), we identified that the factors of production that become the factor inputs for the production process are land labor and capital. Well, try and remember that when each production method is distinguishable from the other because of the degree by which we use any one of the factors of production. Lets take a look at the production methods individually and draw these differences out.
Job/customized production
Job production entails the production of one product at a time. The example of building a large vessel such as a tanker that will ferry goods across the ocean is that on Job production. One tanker is built at a time by Kawasaki Heavy Industries, Limited who also produces the Kawasaki motorcycle! Other examples of job production in companies can be seen with aircraft manufactures such as Boeing and Airbus. Although all the above represent large machines and equipment, a wedding dress and wedding cake, and a tailored suit, are all examples of job production.
Therefore, job production generally is labor intensive, with a workforce that is highly skilled and also generally with machinery that is specialized. The distinct advantages of job production are:
1) Very motivational for workers as it is not monotonous but varied and results in pride of accomplishment.
2) Requires less management coordination and control.
3) Due to the labor intensive nature of focus the quality is higher
and
4) The job can be modified to meet the needs and tastes of the consumer
There are also disadvantages of Job production which are as follows:
1) The overall costs of manufacturing is highest when compared to the other production methods, this due to the highly trained labor and special equipment
2) Due to the specialized use of equipment, these may not be convertible to any other use and therefore serve a limited purpose.
3) The demand for special jobs will require longer production time and therefore delay income
Can you think of other examples of job production? Does having a private tutor as opposed to sitting in the classroom with 15-20 other students seem as another suitable example?
Batch production
Remember that we said each production method is distinguishable from the other because of the degree by which we use any one of the factors of production. Batch production therefore has a different degree of usage in the factors of production when compared to job production. Instead of one item produced at a time, with batch production a greater number of products are produced. There are therefore similarities in the products being produced although the number is limited to a set amount. A good example would be the production of a particular style of car seats or baked goods. When the batches are produced, they can be tailored to meet the needs and demands of a group of consumers with similar tastes and wants. Therefore, as compared to the job production method, a larger number of the products can be manufactured at a lower cost of production. Workers are not as engaged and machines are more active. Therefore, this process is more capital intensive.
There are clear advantages in the batch production method, which are as follows:
1) Each batch can be designed to meet the consumers wishes, therefore there is some choice inherent in this production method as the alteration of machines allows for this flexibility
2) There is the likelihood that workers will work in teams and produce varied products. The costs of these employees will invariably be lower as they do not need to be highly skilled.
3) The costs associated with the machines will be lower because the produced goods will be similar and thereby standardized.
4) Batch production is more expedient than job production. In this respect twenty or thirty units can be replicated as opposed to one item at a time as we see in nob production.
The disadvantages of batch production are as follows:
1) Although there are some benefits for the workforce in batch production plants, a disadvantage is the lack of motivation in repetitive batch output. Workers will not have the satisfaction of being a part of the entire process and thereby will not feel the sense of accomplishment seen in Job production.
2) In the event the batch order request is of a low number, the related manufacturing costs of having to alter the equipment to meet the new production requests may outweigh the benefits of each batch production
3) Work-in-progress inventory will imply that the batch is still a cost of ongoing production whereby the entire process is incomplete. Therefore, batch production will mean that production costs will not be meet quickly through rapid production and sales.
4) The costs associated with adjusting and servicing the production machinery are not only time related but labor related.
Batch production lies somewhere between job production and the next production method, mass or flow production.
Mass/flow/process production
The type of production process is also distinguishable from the others because of the degree by which we witness the use of the factors of production. Mass of flow production is a continuous process that is very capital intensive and features a high volume of products emerging as a result. In this respect, large inventories of raw material are needed to continuously feed the manufacturing. There are many examples of this multiplication of human effort through the use of machines, such as the bottling industry, newspaper companies and the sweets and confectionaries industries among others.
The process is repetitive; fast paced and requires the use of computers or (CAM) Computer Aided Manufacturing.
The advantages of Mass or Flow production
1) Perhaps the biggest advantage is what we call economies of scale. Because of the high volume of units produced, the per unit cost drops dramatically.
2) On account of the highly capital intensive nature of the manufacturing, human labor cost are reduced significantly and thereby further decreases labor related costs. The labor is restricted to machine specialists and supervisors
3) Due to use of machines, flow production can continue uninterrupted at all times of the day and all dates of the year in order to meet market based demands. If the demand wanes, in turn the production can be reduced and the stockpiling of finished goods inventory reduced.
The Disadvantages of Mass or Flow production
1) If you can imagine workers in the factory doing monotonous work and being bored, well this is on the major disadvantages of Mass production. The repetitive nature of flow production will severely affect motivation and morale will suffer.
2) We said each production method is distinguishable from the other because of the degree by which we use any one of the factors of production. Because flow production requires large investments in capital, the cost of setting p and installing the machines will be very high. The return on the investment will have to be calculated for the efficiency realized, meaning human labor can be decreased in order to meet the lower cost target. This decision can have its unintended consequences.
3) Due to the mass production of units, quality control will suffer. Consider the ability of scrutinizing a unit that has been produced in job production. This is absent in mass production.
4) If the machines breakdown, the costs of repair can be very high. In addition periodic maintenance is required which also adds to the costs. However, as previously stated, the cost benefit analysis has to be carefully weighed.
5) As products are produced en-masse, they are indistinguishable from each other, therefore the standardization of the products produced is also a disadvantage as consumes will not be able to request or be provided with products that may suit their individual taste.
Cellular manufacturing
Cellular manufacturing is a product of Lean production, which we will examine shortly. The concept of cellular manufacturing lies in the layout or design of the workplace. In essence the workers and manufacturing process takes place in cells or groups. Workers multitask, utilize machines and integrate the production process in their unit with less time wasted in movement of labor and material.
The advantages of Cellular production
1) The manufacturing process is more team oriented and balanced thereby increasing productivity.
2) The motivation level is workers is higher as the team based approach is more suited to group interaction
3) The movement of material and labor is reduced significantly adding to productive time.